Financials

in Fact sheets

Operating revenue
20171 in $M 20161 in $M 2015 in $M
Operating revenue (GAAP) 37,784 36,558 37,864
Operating expense
2017 in $M 2016 in $M 2015 in $M
Operating expense (GAAP) 34,113 32,214 32,698
Less: Special operating expense −176 −745 −326
Equals: Operating expense, excluding special operating expense (non-GAAP) 33,937 31,469 32,372
Less: Employee salaries and related costs −10,941 −10,176 −9,713
Equals: Non-labor operating costs 22,996 21,293 22,659
Operating income
2017 in $M 2016 in $M 2015 in $M
Operating income (GAAP) 3,671 4,344 5,166
Add: Operating expense: special charges 176 745 326
Equals: Operating income, excluding special operating expense (non-GAAP) 3,847 5,089 5,492
Net income
2017 in $M 2016 in $M 2015 in $M
Net income (GAAP) 2,144 2,234 7,340
Add/less: Operating and nonoperating expenses: special charges, net of income taxes −79 588 −2,613
Add/less: Economic hedge adjustment: MTM gains/losses from fuel hedges settling in future periods 0 0 −8
Add/less: Economic hedge adjustment: Prior period gains/losses on fuel contracts settled in the current period 0 6 −241
Equals: Net income, excluding operating and nonoperating special charges, net and reflecting economic hedge adjustments (non-GAAP) 2,065 2,828 4,478

Operating and nonoperating expenses: special charges

Operating and nonoperating special charges, net
2017 in $M 2016 in $M 2015 in $M
Operating expense: special charges 176 745 326
Severance and benefit costs 116 37 107
Impairment of assets 25 412 79
Labor agreement costs 0 171 18
Cleveland airport lease restructuring 0 74 0
Sale of assets and other special gains/losses, net 35 51 122
Nonoperating expenses: special charges, net of income taxes
2017 in $M 2016 in $M 2015 in $M
Nonoperating expense: special charges, net of income taxes −255 −157 −2,939
Loss on extinguishment of debt and other, net 0 −108 202
Income tax benefit related to special charges −63 −229 −11
Income tax benefit associated with valuation allowance release −192 180 −3,130
Total operating and nonoperating expenses: special charges, net of income taxes
2017 in $M 2016 in $M 2015 in $M
Total operating and nonoperating special charges, net −79 588 −2,613

Footnotes:

  1. Amounts adjusted due to the adoption of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) and Accounting Standards Update No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.

Notes: Pursuant to SEC Regulation G, UAL has included the above reconciliation of reported Non-GAAP financial measures to comparable financial measures reported on a GAAP basis. UAL believes that adjusting for special items is useful to investors because special charges are non-recurring charges not indicative of UAL’s ongoing performance. In addition, the company believes that adjusting for MTM gains and losses from fuel hedges settling in future periods and prior period gains and losses on fuel contracts settled in the current period is useful because the adjustments allow investors to better understand the cash impact of settled hedges in a given period. Certain prior period amounts have been reclassified to conform to the current period presentation. For additional information related to special items, see Note 14 to the financial statements included in the 2017 Annual Report Form 10-K.